Bixley Company Budgets Variable Manufacturing Overhead at 50% of Its

question 122

Multiple Choice

Bixley Company budgets variable manufacturing overhead at 50% of its direct labour costs.The company estimates that 20,000 direct labour hours will be used at an average rate of $11.50 per hour.Bixley's fixed manufacturing overhead costs are budgeted at $90,000 for the year.The company's budgeted manufacturing overhead for the year is

• A)$320,000.
• B)$230,000.
• C)$205,000.
• D)$115,000.

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